Make Journal entries for the following transactions for the Hat Store 1-Mar Hat Store buys hats on account for $4,400 from a distributor with ter and payment 2/10 net 30 2-Mar Paid freight on the purchase from 3/1 cash $100 5-Mar Sold 20 hats to a baseball team for $600 on account 3/10 net 30. The 6-Mar Hat store returned 3 damaged hats, related to 3/1 purchase and rece 8-Mar Paid the distributor for the purchase in # 1 in full and took the discoi subtract the discount.. 8-Mar Hat store bought more hats for $5,500, cash. No freight cost 9-Mar Received payment from the customer for merchandise sold on 3/5. 9-Mar Hat store sold 50 hats for 1200 cash. Terms are FOB destination. Th 10-Mar The Hat store paid freight on the 3/9 sale $100 cash 11-Mar Customer from 3/9 sale returned 5 hats and we gave them cash back The cost on those hats was $50 3 For the above transactions create an Income statement for March just down to the Gross Profit Revenue less Discounts less Returns & Allowances Net Revenue Cost of Goods Sold NOTE: The Following 4 problems are connected to the same company ABC Software has revenue of 300,000 in 2002 and estimates they should put 10% of revenue in the Allowance for Doubtful accounts 4 Make the entry on 12/31/2002 for this below - assume they have not had any entries to the Allowance prior to this DATE Account Debit Credit Accounts Receivable (gross) at 12/31/2002 is the following aged: Age 1-30 days 31-60 days 61-90 days over 90 days Total A/R $ $ $ $ Amount 60,000 40.000 30.000 10,000 140.000 Target Allowance % they don't think they can collect) 5% 10% 50% 90% 5 Based on the above schedule, how much should they have in the Allowance for Doubtful accounts? 6 Make the Journal entry to adjust the allowance account. Use #4 answer as the current amount in that account DATE Account Debit Credit Early the next year they decide to write off the receivable from a customer for $2.000 Describe this with a journal entry DATE Account Debit Credit Make Journal entries for the following transactions for the Hat Store 1-Mar Hat Store buys hats on account for $4,400 from a distributor with ter and payment 2/10 net 30 2-Mar Paid freight on the purchase from 3/1 cash $100 5-Mar Sold 20 hats to a baseball team for $600 on account 3/10 net 30. The 6-Mar Hat store returned 3 damaged hats, related to 3/1 purchase and rece 8-Mar Paid the distributor for the purchase in # 1 in full and took the discoi subtract the discount.. 8-Mar Hat store bought more hats for $5,500, cash. No freight cost 9-Mar Received payment from the customer for merchandise sold on 3/5. 9-Mar Hat store sold 50 hats for 1200 cash. Terms are FOB destination. Th 10-Mar The Hat store paid freight on the 3/9 sale $100 cash 11-Mar Customer from 3/9 sale returned 5 hats and we gave them cash back The cost on those hats was $50 3 For the above transactions create an Income statement for March just down to the Gross Profit Revenue less Discounts less Returns & Allowances Net Revenue Cost of Goods Sold NOTE: The Following 4 problems are connected to the same company ABC Software has revenue of 300,000 in 2002 and estimates they should put 10% of revenue in the Allowance for Doubtful accounts 4 Make the entry on 12/31/2002 for this below - assume they have not had any entries to the Allowance prior to this DATE Account Debit Credit Accounts Receivable (gross) at 12/31/2002 is the following aged: Age 1-30 days 31-60 days 61-90 days over 90 days Total A/R $ $ $ $ Amount 60,000 40.000 30.000 10,000 140.000 Target Allowance % they don't think they can collect) 5% 10% 50% 90% 5 Based on the above schedule, how much should they have in the Allowance for Doubtful accounts? 6 Make the Journal entry to adjust the allowance account. Use #4 answer as the current amount in that account DATE Account Debit Credit Early the next year they decide to write off the receivable from a customer for $2.000 Describe this with a journal entry DATE Account Debit Credit
